Are you thinking about investing in your first property? Or, growing your portfolio to invest in even more? Property investment can be risky but worth it in the long run if you undertake valuable preparation and understand the commitment you will be making.
There are a number of things to consider, so here is some property investment advice to follow every time you embark on a new project.
Property Investment Advice & Considerations
Time & Commitment
Investing in property is not a hobby, it is a serious commitment which will take up your time. Are you prepared to fully give yourself to this process? In addition to committing time, you will also need to put in the money required to maintain homes and meet your tenants’ needs. Remember to evaluate your financial resources and time commitments before dedicating yourself to property investment.
Keep Money Aside for Emergencies
Talking of budget, make sure you have enough funds to create a safety net in case anything breaks, or replacements are required within your property. You need to be able to deal with any problems as quickly as possible when you are a landlord so, by ensuring you’re financially equipped to tackle any issues straight away, this will give you peace of mind. Also, it’s a good idea to have a trusted maintenance and repair company on speed dial.
Importance of Location
Where you choose to make your property investment is one of the most crucial decisions. You must perform thorough research on the area before you make a definitive choice; you need to consider community safety, transportation links, education and accessibility to essential services. What things do you look for when you choose a place to live and settle down? Step into those shoes and look at all of these factors before picking your location.
Avoid Big Renovation Projects
The best thing to do is to start off small with a property that doesn’t require much work doing to it. You need to be realistic and make sure you can handle the first property you will be investing in! Fixer-uppers are a challenge and are best tackled once you’ve been in the market for a long period of time. Save as much time and money to start with by investing in a small yet profitable property.
Screening for Tenants
It is vital to have a thorough screening process for every potential tenant, this includes running background checks and contacting their references. You need to know you can rely on your tenant to pay rent in full and on time. Even after you believe that you have chosen the perfect tenants, you should still be prepared for any problems. This could be damage to the property, living with pets or other violations.
Seek Legal Advice from Caversham Solicitors
In order to make sure your lease is valid and to ensure that you are always in the best position if matters do have to be taken to court, make sure you seek professional legal advice.
At Caversham Solicitors, we have a comprehensive understanding of the legal obligations facing landlords and are able to provide advice to landlords regarding disputes that can arise. Visit our Landlord & Tenant Services page or contact us today to find out more information.